Political Paralysis in the Gilded Age 1869 - 1896
Jan 22, 2016
Political Paralysis in the Gilded Age
1869 - 1896
Republicans & GrantElection of 1868
GrantActed as if the Republic owed him for the war
Almost no political experience
500,000 former slaves voted him in office
“Waving the Bloody Shirt” & “Vote as You Shot”
Republican platform Called for continued Reconstruction (military)
Democrats & Seymour
Democratic PlatformDenounced military Reconstruction (could agree on little else)
Candidate – NY governor Horatio Seymour
Era of Good Stealings
Population by 1870 – 39 million3rd largest nation
Waste, Extravagance, Speculation, Graft
Corruption was common
CorruptionJim Frisk & Jay Gould
1869
Tried to corner the gold market
Result: “Black Friday” price of gold went up
Treasury started releasing gold
Boss Tweed – 1871Milked NYC for $200 million
(Tammany Hall)
Fraudulent elections
Thomas Nast – published in NY Times
Prosecuted by Samuel J. Tilden
More CorruptionCredit Mobilier Scandal – 1867 – 1868
Railroad construction company formed by Union PacificOver paid themselvesPaid off members of congressExposed by NY newspaper
2 congressmen censoredVP accepted stock
Whiskey Ring – 1875Robbed treasury of millions in excise tax
Grant’s private sec was involved
Sec of War William Belknap – 1876
Pocketed money from selling Indians junk
Liberal Republican Revolt1872
Liberal Republican PartyUrged purification of the Washington administration & end military Reconstruction
Horace Greeley – Presidential candidateEditor of NY Tribune
Later endorsed by the Democrats “ate crow”
Republicans renominated Grant
Grant won the election of 1872
Depression & Demands for Inflation
Panic of 1873Caused by unbridled capitalist expansion
Produced too much – price goes down, businesses collapse
Banks – loans were not being repaid
Jay Cooke & Company – NY banking firm / first to collapse
15,000 businesses went bankrupt; including The Freedmen’s Savings and Trust Company
Money PoliciesHard-money vs. cheap-money
Hard-money -- get battle-born currency out of circulation & produce no new money
Cheap-money – supported the production of greenbacks, make more money
Hard-money supporters won outResumption Act of 1875 – by 1879, no greenbacks & gold for all paper money
Some supported money based on silver Congress stopped production of silver dollars in 1873 (Crime of ’73)
Call for inflation
Politics in the Gilded Age
Close elections, indecisive politicians
Higher voter interest – 80% voter turnout
Party Loyalists enjoyed successful political careers as a result of patronage & the Spoils system
Fighting within the Republican Party – 1870s & 1880s
“Stalwart” fractionRoscoe Conkling – US Senator from NY
Believed in swapping civil-service jobs for voters
“Half-Breeds” fractionJames G. Blaine – Congressmen from Maine
Civil-service reform
Succeeded in stalemating each other & deadlocking the party
The Hayes – Tilden StandoffGrant was urged to run for reelection
Congress passed a resolution warning of the dictator implications
Republicans selected Rutherford B. Hayes“The Great Unknown”
Democrats selected Samuel J. Tilden
Tilden received 184 electoral votes – he needed 185
Constitution & Votes Specifies that the electoral returns shall be sent to Congress & opened by president of the Senate
Who should count the votes? Constitution doesn’t say
Compromise of 1877Created to solve the election deadlock
Electoral Count Act - passed by CongressSet up electoral commission consisting of 15 men selected from the Senate, the House, & the Supreme Court
Not successful in solving the problem because there were 8 –R and 7-D
Democrats agreed to elect Hayes in exchange for:
Removal of all federal troops in the South
Subsidizing of a southern transcontinental railroad line – not kept
Results of the CompromiseOfficially ended Reconstruction
Violence was averted by sacrificing the black freedmen in the South
Republicans abandoned its commitment to black equality
Civil Rights Act of 1875 – last try by RepublicansSupposedly guaranteed equal accommodations in public places & prohibited racial discrimination in jury selections
Supreme CourtDeclared Civil Rights Act of 1875 unconstitutional
Declared that the 14th Amendment prohibited only government violations of civil rights, not the denial of civil rights by individuals
The Democratic SouthSuppressed blacks
Blacks who tried to vote faced unemployment, eviction, & physical harm
1890s – required literacy test, voter registration laws, & poll taxes
Blacks became economically dependantSharecropping & tenant farming
Crop-lien system
Jim Crow Laws1890s – state level legal codes
Validated by Plessy v. Ferguson (1896)Ruled that “separate by equal” facilities were constitutional under the “equal protection” clause of the 14th Amendment
Southern blacks were treated harshly for challenging the South’s racial code of conduct
Railroad Strike 1877Presidents of the nation’s 4 largest railroad companies cut employee’s salaries
Pres Hayes called in federal troops to quell the unrest
Backfired on him, caused support from working-class
Workers stoppages spread
100 dead
Showed the weakness of the labor movement
ChineseMade up 9% of population by 1880 in CA
Mostly poor, uneducated, single males came
Came for gold & railroad workMany returned when work disappeared
Worked menial jobs
Denis Kearney of San FranciscoIncited his followers (Kearneyites) to violent abuse of Chinese
Resented the competition for labor
Stopping Chinese Immigration 1879 – bill passed severely restricting immigration of Chinese
Vetoed by Hayes – violated treaty with China
1882 – Congress passed the Chinese Exclusion Act Stopped Chinese immigration until 1943
The Garfield InterludeRepublicans nominated dark-horse James A. Garfield
VP – Chester Arthur
Republican platform- protective tariff & reform of civil service
Democrats – nominated Winfield S. Hancock
Democratic platform – civil service reform & a “tariff for revenue only”
Election of 1880Candidates – turned their backs on problems of debt-burdened farmers & powerless laborers
Democrats harped on Garfield’s acceptance of stock dividends in the Credit Mobilier scandal
Garfield won & rewarded James G. Blaine (Half-Breed) with Sec of State
Caused problems between Half-Breeds & Stalwarts
Garfield’s AssassinationCharles J. Guiteau
shot Pres Garfield in the back in a Washington railroad station
Garfield died 11 weeks later – Sept. 19, 1881
Stalwarts would all get good jobs now under Arthur
Guiteau – found guilty & hanged
Chester Arthur No qualifications for the presidency
Gave his former Conklingite supporters (Stalwart) the cold shoulder
Supported civil service reform Pendleton Act of 1883
Established a merit system based on aptitude and not “pull”
Competitive exams were established
Pendleton Act partially divorced politics from patronage, but it helped drive politicians into “marriages of convenience” with big-business leaders
Election of 1884Republican- James G. Blaine
“Mulligan letters” – connected Blaine to a corrupt deal involving federal favors to a southern railroad
Mugwumps – reformers who joined the Democrats
Democrats – Grover Cleveland Illegitimate son
Mudslinging campaignFew fundamental differences between candidates
Cleveland won election
“Old Grover” Takes Over
Grover Cleveland1st Democratic President since Buchanan
Known for all of his vetoes
Laissez-faire
“Though the people support the gov’t, the gov’t should not support the people.”
Named 2 Confederates to office
Believed in the merit system but eventually caved
Vetoed military pensions
Cleveland & the Tariff
Tariffs were raised during the war
Resulted in gov’t surplus
1887 - Cleveland appealed to Congress for lower tariffs
For the first time in years, there was a real issue that divided the parties
Election of 1888
Democrat – Cleveland
Republican – Benjamin Harrison
Republicans were against lowering tariffsLow-tariff policies was a vote for England
Republicans raised $3 million to fight against a lower tariff
Cleveland – 1st sitting president voted out of his chair since Van Buren in 1840
Benjamin Harrison Elected in 1 88 8Selected James G. Blain e as Sec o f StateNamed Theo do re Roo sev elt – head o f the Civ il Serv ice Co mmission
Problems in the House
Republicans – only 3 votes more than the necessary quorum of 163 members
Democrats – delaying motions – roll call
Republicans wanted to squandered money to safeguard the high tariff that was producing a surplus
Thomas B. Reed
Republican Speaker of the House
Wanted to change House rules
Believed majority should legislate in accordance with democratic policies
No filibustering
“Billion Dollar” Congress Gave birth to a bumper crop of expensive legislative babies
McKinley Tariff Bill of 1890
Boosted tariff rates to their highest peacetime level
Disposed of the troublesome surplus by giving a bounty of 2 cents per pound to US sugar planters
Raised tariffs on agricultural productsActually brought new woes to farmers as manufacturers raised prices
Farmers hated it
Pension Act of 1890
Pensions for all Union CW veterans who had served for 90 days & who were now unable to do manual labor
Helped solve the problem for the Treasury surplus
Secured Rep votes
GAR grateful to the GOP
Silver Problems
Bland-Allison Law-1878
Ordered the purchase and coining of $2-4 million worth of silver a monthProvided little relief to debtors or miners
Sherman Silver Purchase Act of 1890
Required the purchase of 4.5 million ounces of silver every monthTreasury had to issue new notes to pay for it Believed that the addition of immense amount of metallic money would inflate the currency and make for higher prices and easier debt payment
Populist Party – 1892The People’s Party
Rooted in the Farmer’s Alliance of frustrated farmers in the West & the South Platform:
Free & unlimited coinage of silverIncome taxGov’t ownership of telephone, telegraph, & railroadsDirect election of senators1 term for presidentUse of initiative & referendum to allow citizens to propose & review legislationShorter workday & immigration restriction
Problems for Labor
Homestead Strike 1892 – PittsburghSteel plant owned by Andrew Carnegie
Workers were angry over pay cuts
Strikers used rifles & dynamite
Troops were called in
Strike & union of steelworkers was broken
Coming Election of 1892
Discontent gave Democrats high hopes
Democrat – Grover Cleveland
Republican – Benjamin Harrison
Populist Party – James B. WeaverOne of the few 3rd parties in history to break into the electoral column
Populist Party
Wanted to bring labor & farmers togetherColored Farmers’ National Alliance
1 million southern black farmersHoped that their economic goals would overcome their racial differences
Populists appealed for interracial solidarityAppealing to blacks didn’t work because blacks couldn’t vote
Literacy test, poll tax, & grandfather clause
Populist leader Tom Watson abandoned his interracial appeals
Old Grover Cleveland Again
2nd term 1893—only pres to serve 2 nonconsecutive terms Depression of 1893
Lasted for about 4 years Most devastating economic downturn of the century
Causes Overbuilding and overspeculation Labor disorderAgricultural depressionEuropean banks began to call in loans
Cleveland and Depression
Wanted to repeal the Sherman Silver Purchase Act Gold reserve in the Treasury dropped ($100 million) Called Congress into extra session
William Jennings Bryan Championed the cause of free silver in Congress
Cleveland broke the filibuster & Sherman Silver Purchase Act repealed
Alienated the silveritesDisrupted the party
Gold & Job Shortages
Gold reserve sank even lower ($41 million)
Cleveland decided to sell gov’t bonds for gold & deposit the proceeds in the Treasury
Cleveland turned to J.P. Morgan & other bankersBankers loaned the gov’t $65 million in gold
Charged commission $7 million
Helped restore confidence in nation’s finance
Deal angered many
Wilson-Gorman Tariff of 1894
Included a tax of 2% on incomes over $4000
In the Senate, 630 amendments were addedBenefits for sugar trust were added
Did not establish a low tariff / did reduce the rate
Income tax lasted only 1 yearStruck down by the Supreme Court
Result: Republicans won congressional elections in 1894 by a landslide / now a majority